"Looking forward to fiscal year '16, our target is to record a profit. A portion of the image sensors used in our smartphones and a portion of camera modules used in our smartphones are made at Kumamoto TEC and there is a possibility that the status of these production lines might have an adverse impact on the results of this business."

On the image sensor and camera module business, Sony says:

"An operating loss of ¥28.6 billion was recorded in fiscal year '15, significant deterioration of ¥117.6 billion compared to the previous fiscal year. As we announced last week, we recorded ¥59.6 billion impairment charge against fixed assets in the camera module business in the fourth quarter.

We first entered the camera module business in the later part of fiscal year '13. However, our ramp in manufacturing has been slower than expected, and we recorded a large impairment charges as a result.

We thought that we could increase yields and profit margins through automation of the assembly process. But, precisely because we did increase automation, we have limited ability to adapt to changes in specifications and demand. Currently, we are re‐considering the optimal size of this business.

In the image sensor business, which account for the majority of sales and profit in the devices segment, we are currently expanding our sales efforts, primarily to Chinese smartphone manufacturers, and orders are strong, but demand is not expected to recover in earnest until the second half of the fiscal year '16."